Wage hikes | Pay reaches seven-year high as employers struggle with skills shortages

Emerging skills shortages in the UK jobs market are starting to drive up wages, according to research compiled by the Chartered Institute of Personnel and Development (CIPD).

The Guardian reports that, after a “lost decade” of lethargic growth since the financial crisis back in 2008, privately-owned businesses have anticipated an increase in annual pay by 2.5% on average in 2019 – which is up from two per cent at the end of 2018.

Furthermore, the research found that nearly three quarters of the 1,254 employers surveyed were finding it increasingly tough to fill vacancies within the first quarter of 2019. The manufacturing industry was dubbed as the sector harbouring the greatest difficulties when recruiting.

Jon Boys, Labour Market Economist at the CIPD said that the employment market has showed signs that it is ‘surprisingly robust’. He added: